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Characteristics That Help a Farm Achieve Long-Term Viability

Author

Listed:
  • Ibendahl, Gregg
  • Langemeier, Michael R.

Abstract

Agriculture has seen several periods of both high and low farmer profitability. This has resulted in at least some farmers leaving agriculture because of financial difficulty. Other farmers, however, have managed to survive the bust periods of agriculture and are still farming today. This paper uses a 40-year dataset of farm financial data from the Kansas Farm Management Association (KFMA) to compare those farms that have been in the program the entire 40-year timeframe to the remaining farms in the dataset to determine if those long-term farms have any different financial characteristics that have helped them survive long-term. Results indicate that the long-term farms have put more of their profits back into the farm resulting in higher levels of equity and lower levels of debt.

Suggested Citation

  • Ibendahl, Gregg & Langemeier, Michael R., 2014. "Characteristics That Help a Farm Achieve Long-Term Viability," Journal of the ASFMRA, American Society of Farm Managers and Rural Appraisers, vol. 2014, pages 1-11.
    • Handle: RePEc:ags:jasfmr:197150
    DOI: 10.22004/ag.econ.197150
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    References listed on IDEAS

    as
    1. Michael D. Boehlje & Brent A. Gloy & Jason R. Henderson, 2013. "U.S. Farm Prosperity: The New Normal or Reversion to the Mean," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 95(2), pages 310-317.
    2. Stephan J. Goetz & David L. Debertin, 2001. "Why Farmers Quit: A County-Level Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(4), pages 1010-1023.
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